A framework for designing robust supply chains considering product development issues

Abstract

The primary objective of the design for supply chain (DFSC) is the selection of an appropriate product family. Moreover, it deals with the selection of the optimal combination among the different conflicting criteria while making a trade-off between the supply chain cost, sales profit and the product design complexities. In this research, to address the DFSC issues a product platform approach has been proposed which amalgamates the component modularity as well as the function modularity in the product design. The optimisation model proposed in this paper for the product development and the supply chain design is based on a generic bill of materials (GBOM) representation. The complete framework includes vital decision-making needed for designing a robust supply chain such as locating plants to alleviate the likely dominance of production cost and market mediation cost on product variety and imparting process flexibility of the located plants. The optimisation model proposed in this paper, models the supply chain cost, sales profit and product design complexity as three criteria that altogether determine the robustness of the supply chain and the underlying product development approach. Certain parameters like process flexibility, flow types and drivers of the product variety dominance have been controlled in the design framework. To resolve the complexity of the proposed model a genetic algorithm (GA) technique has been proposed. The proposed GA adopts an arithmetic crossover, a dynamic mutation and a variable penalty strategy to produce optimal results in a very short computational time. To validate the proposed model, a simulated case study of the wiring harness supplier of an AGV manufacturer has been studied

New flexibility drivers for manufacturing, supply chain and service operations

“…Stevenson and Spring (2007) distinguish robust network flexibility as the range of events that the existing supply chain structure is able to cope, and the adaptability of supply chains. Yadav et al (2011) analysed the flexibility of supply chain in the context of robustness regarding flexible product families and diversification. Seifert and Langenberg (2011) also consider supply chain flexibility and adaptability with product decisions.…”

Strategic alignment of product portfolio and supplier management

“…Variety is production-dominant if the increase in production costs associated with increased variety surpasses the increase in market mediation costs. Conversely, variety is mediation-dominant if the increase in mediation costs associated with increased variety outweighs the increase in production costs (Yadav et al, 2011). Matching of production dominant variety with the scale efficient production and matching of the market mediation-dominant variety with local plants lead to firm's better performance (Randall and Ulrich, 2001;Yadav et al, 2011).…”

Evaluation of product-platform decisions based on total supply chain costs

“…Over the last couple of years, the interrelationship between product platform and supply chain design has gained more attention Khalaf, Agard, and Penz 2011;Yadav et al 2011;Baud-Lavigne, Agard, and Penz 2012). Unlike these papers, we do not make supply chain design decisions (e.g.…”